Leahy took EB-5 fraudster’s $$, urged quicker action for visa approval

by Steve MacDonald

Republished with permission from August 27, 2021

A group representing 121 “Investors” has filed a lawsuit claiming that state officials in Vermont knew the project at a Vermont Ski Resort was a Ponzi scheme but did nothing to stop it.

If you missed it, back in early 2016, we reported on the funneling of millions of dollars, laundered through the Feds, to “projects” in Newport, Vermont.

From 2014 through 2015, over 17 million dollars was awarded by the FAA and DOT to remodel the airport serving the tiny town and the 4600 residents. It caught our attention (see Les Otten and the Balsams Boondoggle), introducing us to Bill Stenger and Ariel Quiros.

They used the Feds EB5 Visa program to get investment money for their projects from foreign investors.

A ski resort expansion (mismanaged by Jay Peak and QBurke), among others, explains the airport expansion because you can’t have a successful resort if people can’t land planes nearby to take advantage. Newport is on the Canadian border, a drive from just about everywhere.

I’m sure that’s how they sold it.

That’s how Senators Sanders (I) and Leahy (D), and Congressman Welch sold it. Expansions “that will bring people for business, tourist and recreation opportunities throughout the region.”

They were very excited to announce all those funds secured for the runway and then a taxiway expansion(s) to this local airfield.

Leahy also personally complained to a Senate Committee about delays with the EB5 program (being used to support the Ponzi scheme).

Vermont developers have used EB-5 funding at several large, tourist-related development projects, including at Jay Peak and Burke Mountain, in Stowe and at Sugarbush, Okemo and Mount Snow. Because of a backlog in processing and increased oversight by federal regulators, including the SEC and USCIS (immigration), application approvals have slowed and projects have stalled.

If foreigners gave money ($500,000) to so-called investment opportunities, the US would offer them a green card for permanent residence in the country.

Both Stenger and Quiros (mostly Quiros) have pleaded guilty to various charges stemming from an FBI investigation into their fraud (over the AnC biotech facility project in Newport). Most of the money has been recovered. But until the Vermont political machines that eagerly aided and abetted the fraudsters haven’t suffered much, if any.

The lawsuit is directed at them, and it should start with these folks from our 2016 Report.

Newport, Vermont resident Bill Stenger has his fingers in all these pies, and like any good “developer” has invested his fair share of dollars on the local crop of politicians. He gave $4000.00 to the campaign of the current governor, Peter Shumlin, and his resort project, Jay Peak, shows a $2000.00 donation to Shumlin in 2012.

He gave Patrick Leahy $4800 in 2010.

Peter Welch got $1000 in 2014.

Ariel Quiros gave $2000 directly to Shumlin, $14,000 to the VT Democrat Party, and another $12,000 to the Vermont State Democrat Federal Campaign Committee- which funnels donations to support the campaigns of Vermont’s…Senators and Congresspersons.

And Q Burke Mountain Resort gave Shumlin $2K in 2014.

And according to this report, the same Jay Peak developers have donated a total of least $71,900 dollars to Vermont Democrats since 2011.

Developers grease wheels. A few of them, Leahy among them, promoted the program that (at least briefly) helped hide a Ponzi scheme. Will any of them get named or pay some price?

Categories: Crime

9 replies »

  1. Again, keep in mind too that Sen. Leahy’s wife, Marcelle Pomerleau Leahy, was real estate tycoon Tony Pomerleau’s niece. Not only was Tony Pomerleau involved in various Newport area real estate deals with these EB-5 guys, his niece, Leahy’s wife (including Leahy himself), actively promoted the dealings. Curiously, Tony Pomerleau was one of the first to realize the shadiness of the EB-5 group and bailed out early on. This whole circumstance is thick with insider thieves.

  2. No…there is no accountability, and there won’t be. Imagine, just imagine, if there were! Vermont’s ruling class…..headed for the exit, big time.

  3. The wagons were circled around Leahy long ago, and a thick layer of Teflon applied.
    Shumlin has his gig at Harvard and maybe a Dominica passport.
    Welch got a Teflon coat in the deal.
    Scott may have to deal with the splatter from this, he was Lt. Gov at the time, but Shumlin kept him out of the loop. Hubris and campaign dollars, you know.
    The taxpayer? well, you know what they get.

    • Frank, that’s why the Gov never claims to know anything when he’s asked. He does it at every news conference. He’s trying to make his own Teflon. If the Gov doesn’t know anything, maybe he shouldn’t be governor. And to let these medical maniacs go after children with is experimental poison is (you pick the word). I have one.

  4. Apparently, no one can wake the voting public up. Is this laziness, ignorance or stupidity. Look at Bernie for instance. All the Bernie Bros sent small donations to the head socialist, Bernard of Brooklyn and look what he got. A couple million due to his senate seat, 3 houses (one on beautiful Lake Champlain) and an$80,000 Audi sports car. Add to that private jet travel, luxurious hotel accommodations and the best food. What did the Bernie Bros get? Nothing for suckers.

    Vermonters continue to vote for corruption, crony capitalism, nanny state controllers, now medical tyranny, authoritarian regulations on everything that moves or stands still, carpetbagger politicians, unfunded mandates, government backroom dealings with the climate profiteers and the list goes on and on. Now, what does the taxpayer get? Nothing for suckers.

    If the people running this state haven’t heard that the so called vaccine jab can be dangerous to our health, maybe they shouldn’t be running anything. Time to legalize Freedom.

  5. When will the domino’s fall for these crooked politicians? Way past time something is done. Maybe we should start with a full forensic audit just to see if these “politicians” really got the votes they say they did. These guys are all in it for themselves without concern for us Vermonter that have lived here for generations.

    • If you looked close into the eyes of the Ethan Allan statue on the state house entrance, you would probably see a tear. Technology has created apathy and fear. It will be our undoing.

  6. If onlybthe fbi was on the level, honest and fair minded. Then we could hope that justice may be served. Sadly they are not. The list is endless, comey, clapper, brennen, learner, holder, lynch… you know the rest.

  7. Until we hand count our ballots in every election, we will never truly be certain whether these crooked, inept politicians really got elected or cheat their way to continuing incumbency.

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